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Project Delivery Methods of the Future, Cloud Computing, and BIM
Nicholas Cholakis
Peter Cholakis
In the long history of humankind, those who learned to collaborate and improvise most effectively have prevailed.
– Charles Darwin
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People
ProcessInformation
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Characteristics of Emergent Project Delivery Methods
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– Qualifications Based or Best Value Selection
– Some form of pricing transparency
– Early and ongoing information-sharing among project stakeholders
– Appropriate distribution of risk
– Some form of financial incentive to drive performance
Design - Build
• Single Source Responsibility
• Shifts risk of design errors from Owner to Contractor
• Maximizing construction dollars—Design-to-Budget
• Faster Delivery
• Can be commoditized as low bid, but can be innovative with performance-based measures
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Integrated Project Delivery - IPD
• Alliance Contracts create shared Risk and Reward—shared contingency and shared incentive pool. Liability Waivers mean no ability to sue.
• Entire team on board before design starts—requires Qualifications Based Selection and Full Pricing Transparency
• Deep involvement of key subcontractors and suppliers in design process
• Goal is to reduce duplication of design efforts--shop drawings serve design development
• Utilization of BIM and other forward-thinking technologies to enable collaboration among team members
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Job Order Contracting - JOC
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“IPD Lite” for Existing Buildings
Consolidates procurement to shorten Project Timelines and reduce procurement costs
Transparency of pricing and procurement compliance through Unit Price Book
Long Term Facility Relationship increases productivity and enables reiterative process improvements
Quality and performance incentivized through IDIQ form of contract with minimal guarantee and clear maximum volume
Shorter Project Timelines
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Advantages for Owners
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• Fast and timely delivery of projects.
• Consolidation of procurement creates lower overhead cost and procurement cost
• Contractor and owner efficiencies in prosecution of the work. Development of a partner relationship based on work performance.
• Virtual elimination of legal disputes, claims and change orders.
• Standard pricing and specification utilizing a published unit price book (UPB), resulting in efficient and effective estimating, design, and fixed price construction.
How Owners Use JOC & Supporting Technology
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Programming Estimate
Estimates from Each Design Stage
Final Detailed Cost Estimate
Initial Contractor Proposals
Technically Evaluated Proposals
Final Revised Contractor Proposals
Modifications & Changes Orders
Track & Manage each project from inception to completion.
Manage a single project, your entire contract, or multiple contracts.
All project milestones, thru warranty period.
Display status of each project.
Maintain a complete cost history
Record all estimates associated with a project.
Review value of all projects awarded on a specific contract, or to a specific contractor.
Reports show pre-negotiation strategies and post-negotiation summaries.
Process
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MasterFormat2010, Uniformat II – Reference Cost Databases (aka RSMeans)
COBIE, OMNICLASS
IFC
Metrics: FCI, SCI, Cost/GSF, Cost/NSF, Utilization Rates, ….
Supporting Technology
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Integration of Proven Construction Delivery Methods / Project Management
Standardized Cost Data Architectures / Taxonomies (i.e. RSMeansTM – 400,000 line items)
Comprehensive Document Management
Electronic Visualization / QTO
“Facebook of the Built Environment”
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Catalysts For Change
Economic
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72% over budget
70% over schedule
5% spent in bidding
ALLPROJECTS
Rex Miller, Commercial Real Estate Revolution
From
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Owner
AE
Contractor
Subs
??
?
?
!! !!!!
?@#!*
To This
Flexibility
Collaboration
Excel
Spreadsheets
Relational Database
Cloud
Computing
Environmental
1. Recognition of building’s role in climate change
2. Challenge of meeting rising Energy Needs and paying for it
3. Government mandates
Technology
A disruptive technology changes/overturns traditional business methods and practices.
The Path We Travel
But A Lot is Going On!
Convergence
Flat World
Economy
Constrained
Capital Dollars
Refocus on
O&M
Carbon
Footprint
Government
Mandates
New Project
Delivery
Methods to Meet
New Demands
Altered Environmental
Landscape
Altered Economic Landscape
Disruptive Technology
